BILL NUMBER: SB 871	CHAPTERED  09/27/00

	CHAPTER   749
	FILED WITH SECRETARY OF STATE   SEPTEMBER 27, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 26, 2000
	PASSED THE SENATE   AUGUST 31, 2000
	PASSED THE ASSEMBLY   AUGUST 31, 2000
	AMENDED IN ASSEMBLY   AUGUST 29, 2000
	AMENDED IN ASSEMBLY   AUGUST 25, 2000
	AMENDED IN ASSEMBLY   JUNE 27, 2000
	AMENDED IN ASSEMBLY   JUNE 8, 2000
	AMENDED IN SENATE   JANUARY 20, 2000
	AMENDED IN SENATE   JANUARY 3, 2000

INTRODUCED BY   Senator Escutia
   (Principal coauthor:  Assembly Member Firebaugh)
   (Coauthor:  Assembly Member Calderon)

                        FEBRUARY 25, 1999

   An act to amend Section 52122.1 of the Education Code, relating to
class size reduction.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 871, Escutia.  Class Size Reduction Program:
facilities-related costs.
   Existing law establishes the Class Size Reduction Program to
provide funding to school districts to reduce class size in
kindergarten and grades 1 to 3, inclusive, to not more than 20 pupils
per certificated teacher.
   Existing law establishes 2 options under which a school district
may apply to the Superintendent of Public Instruction for funds from
the program.  Under Option One, a school district that provides a
reduced class size for all pupils in each classroom for the full
regular schoolday for each grade level may receive an apportionment
equal to $800 per pupil.  Under Option Two, a school district that
provides a reduced class size for all pupils in each classroom for at
least 1/2 of the instructional minutes offered per day at each grade
level may receive an apportionment equal to $400 per pupil.
   Existing law permits a school district applying to implement the
program in the 1998-99 school year to request that a portion of the
maximum operating funds for which the district would be eligible if
the district met the requirements of Option One be used for
facilities-related costs necessary for the establishment of new
classes.
   This bill would revise these provisions to permit a school
district applying to implement the program in the 2000-01 and 2001-02
school years to make a similar request.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 52122.1 of the Education Code is amended to
read:
   52122.1.  (a) A school district applying to implement the Class
Size Reduction Program in additional classes in the 2000-01 and
2001-02 school years may request that a portion of the maximum
operating funds for which the school district would be eligible if it
fully reduced class size in kindergarten and in grades 1 to 3,
inclusive, pursuant to subparagraph (A) of paragraph (2) of
subdivision (b) of Section 52122, be used for facilities-related
costs necessary for new classes established under this program beyond
those established in the prior school year.
   (b) For the 2000-01 school year, an application made pursuant to
this section, the form of which shall be developed by the
Superintendent of Public Instruction not later than April 1, 2001,
shall be submitted by each school district that elects to apply for
funding under this section not later than  June 1, 2001, and shall
include certification by the governing board of the school district
that, in the school year for which the application is being
submitted, the school district can show one of the following:
   (1) In the 1996-97 fiscal year, the school district received
funding for the Class Size Reduction Facilities Funding Program
pursuant to Chapter 19 (commencing with Section 17200) of Part 10.
   (2) The school district is qualified as of the date of the
application for new construction funding under the Leroy F. Greene
School Facilities Act of 1998 (Chapter 12.5 (commencing with Section
17070.10) of Part 10) on a districtwide basis or for the relevant
school attendance area, as defined in Section 17070.15, or the
district is eligible to receive growth funding from another statewide
school construction program.
   (3) The school district has insufficient classroom space to house
all the new classes that need to be established in order for the
district to participate in the Class Size Reduction Program contained
in this chapter, as demonstrated through the eligibility calculation
specified in Section 17203, as that section read on January 1, 1999,
that shall be certified by the governing board of the school
district, adjusted to exclude new teaching stations established in
the school year for which the application is being submitted for this
program.
   (c) School districts requesting funds for facilities pursuant to
this section are eligible to receive forty thousand dollars ($40,000)
for each new teaching station that is needed to be established for
the purpose of expanding the Class Size Reduction Program in the
2000-01 school year beyond the number of new classes established in
the prior school year pursuant to subparagraph (A) of paragraph (2)
of subdivision (b) of Section 52122.
   (1) The maximum amount of funds a school district may receive for
both operation funds, pursuant to subparagraphs (A) and (B) of
paragraph (2) of subdivision (b) of Section 52122, and facility funds
provided by this section, is limited to the number of pupils in
kindergarten through grades 1 to 3, inclusive, multiplied by the
Option One stipend specified in Section 52126.
   (2) The maximum apportionment for facilities-related costs
available to a school district under this section shall be calculated
as follows:
   (A) Multiply the district's certified enrollment in kindergarten
and grades 1 to 3, inclusive, as of October of the previous school
year by the per pupil stipend established by subdivision (a) of
Section 52126 for the school year for the year in which the
application is being submitted.
   (B) Subtract from the amount determined in subparagraph (A) the
product of the number of pupils the district certifies are in a class
that satisfies the provisions of subparagraph (A) of paragraph (2)
of subdivision (b) of Section 52122 during the school year for the
year in which the application is being submitted times the per pupil
stipend for the school year in subdivisions (a) and (c) of Section
52126 for which the application is being submitted.
   (C) Subtract from the amount determined in subparagraph (B) the
product of the number of pupils the district certifies are in a class
that satisfies the provisions of subparagraph (B) of paragraph (2)
of subdivision (b) of Section 52122 during the school year for the
year in which the application is being submitted times the per pupil
stipend in subdivisions (b) and (d) of Section 52126 for which the
application is being submitted.
   (D) In no case shall a district receive facilities funding of more
than forty thousand dollars ($40,000) per new class that is needed
to expand the Class Size Reduction Program during the school year for
which the application is being submitted.
   (3) If, by June 30, of the year in which a facilities grant has
been requested, or by a later date specified in a statute, the State
Department of Education determines that the school district was
eligible to receive facilities grants in excess of the number of
facilities grants actually received, the department may award
additional grants to the school district, to the extent that the
funds are available for this purpose.  To determine if funds are
available to a school district for this purpose, the department shall
use the calculations in subparagraphs (A) to (D), inclusive, of
paragraph (2), but adjusted for actual implementation of the Class
Size Reduction Program and yearend enrollment.
   (d) For the 2001-02 school year, an application made pursuant to
this section, the form of which shall be developed by the
Superintendent of Public Instruction not later than 30 days after the
Budget Act of 2001 is chaptered, shall be submitted by each school
district that elects to apply for funding under this section not
later than 90 days after the Budget Act of 2001 is chaptered and
shall include certification by the governing board of the school
district that in the 2001-02 school year, the school district can
show one of the following:
   (1) In the 1996-97 fiscal year, the school district received
funding for the Class Size Reduction Facilities Funding Program
pursuant to Chapter 19 (commencing with Section 17200) of Part 10.
   (2) The school district is qualified as of the date of the
application for new construction funding under the Leroy F. Greene
School Facilities Act of 1998 (Chapter 12.5 (commencing with Section
17070.10) of Part 10) on a districtwide basis or for the relevant
school attendance area, as defined in Section 17070.15, or the
district is eligible to receive growth funding from another statewide
school construction program.
   (3) The school district has insufficient classroom space to house
all the new classes that need to be established in order for the
district to participate in the Class Size Reduction Program contained
in this chapter, as demonstrated through the eligibility calculation
specified in Section 17203 as that section read on January 1, 1999,
that shall be certified by the governing board of the school
district, adjusted to exclude new teaching stations established in
the school year for which the application is being submitted for this
program.
   (e) School districts requesting funds for facilities pursuant to
this section for the 2001-02 school year are eligible to receive
forty thousand dollars ($40,000) for each new teaching station that
is needed to be established for the purpose of expanding the Class
Size Reduction Program in the 2001-02 school year beyond the number
of new classes established in the prior school year pursuant to
subparagraph (A) of paragraph (2) of subdivision (b) of Section
52122.
   (1) The maximum initial amount of funds a school district may
receive for both operation funds, pursuant to subparagraphs (A) and
(B) of paragraph (2) of subdivision (b) of Section 52122, and
facility funds provided by this section, is limited to the number of
pupils in kindergarten through grades 1 to 3, inclusive, multiplied
by the Option One stipend specified in Section 52126.
   (2) The maximum initial apportionment for facilities-related costs
available to a school district under this section shall be
calculated as follows:
   (A) Multiply the district's certified enrollment in kindergarten
and grades 1 to 3, inclusive, as of October of the previous school
year by the per pupil stipend established by subdivision (a) of
Section 52126 for the school year for the year in which the
application is being submitted.
   (B) Subtract from the amount determined in subparagraph (A) the
product of the number of pupils the district certifies will be in a
class which satisfies the provisions of subparagraph (A) of paragraph
(2) of subdivision (b) of Section 52122 during the school year for
the year in which the application is being submitted times the per
pupil stipend for the school year in subdivisions (a) and (c) of
Section 52126 for which the application is being submitted.
   (C) Subtract from the amount determined in subparagraph (B) the
product of the number of pupils the district certifies will be in a
class that satisfies the provisions of subparagraph (B) of paragraph
(2) of subdivision (b) of Section 52122 during the school year for
the year in which the application is being submitted times the per
pupil stipend in subdivisions (b) and (d) of Section 52126 for which
the application is being submitted.
   (D) In no case shall a district receive facilities funding of more
than forty thousand dollars ($40,000) per new class that is needed
to expand the Class Size Reduction Program during the school year for
which the application is being submitted.
   (3) If, by June 30 of the year in which a facilities grant has
been requested, or by a later date specified in a statute, the State
Department of Education determines that the school district was
eligible to receive facilities grants in excess of the number of
facilities grants actually received, the department may award
additional grants to the school district, to the extent that the
funds are available for this purpose.  To determine if funds are
available to a school district for this purpose, the department shall
use the calculations in subparagraphs (A) to (D), inclusive, of
paragraph (2), but adjusted for actual implementation of the Class
Size Reduction Program and yearend enrollment.
   (f) The funds allocated pursuant to this section shall be
considered to be a loan to the school district receiving the funds.
The following loan repayment provisions shall apply to all
allocations made pursuant to this section:
   (1) If the school district is eligible to receive grants pursuant
to the provisions of subparagraph (A) of paragraph (2) of subdivision
(b) of Section 52122 for the 2000-01 or 2001-02 school year and has
satisfied all requirements to receive these funds in the 2000-01 or
2001-02 school year, for all classes for which it received facilities
funding pursuant to this section, as determined by the State
Department of Education, the school district shall not be required to
repay the loan.
   (2) If a school district receives funding pursuant to this
section, but has not satisfied the requirements of paragraph (1) for
all classes for which it received facilities funds, the
Superintendent of Public Instruction shall notify the Controller and
school district in writing, and the Controller shall deduct an amount
equal to the portion of the total loan amount received by the school
district under this subdivision for the classes that the school
district failed to reduce the size to 20 or fewer pupils pursuant to
the provisions of subparagraph (A) of paragraph (2) of subdivision
(b) of Section 52122, from the school district's next principal
apportionment or apportionments of state funds to the school
district, other than basic aid apportionments required by Section 6
of Article IX of the California Constitution.
   (g) Funds allocated to school districts pursuant to this section
shall be expended solely for the purpose of facilities-related costs
associated with the implementation of the Class Size Reduction
Program contained in this chapter.
   (h) Funds shall not be allocated to school districts pursuant to
this section for the purpose of assisting school districts in
implementing Option Two, as set forth in paragraph (2) of subdivision
(b) of Section 52122.
   (i) Nothing in this section shall be construed as precluding
school districts from fully implementing class size reduction in
kindergarten and grades 1 to 3, inclusive.
   (j) It is the intent of the Legislature that, for each new
teaching station a school district establishes for the purpose of
class size reduction for which the school district did not receive a
facilities grant under this section or any previous appropriation for
this purpose, the school district shall be eligible for facilities
funding from any state general obligation bond measure approved for
that purpose.
   (k) For purposes of this section, any reference to school
districts shall be deemed to include any charter school.
